IT major Infosys Technologies posted a consolidated net profit of Rs 17,800 million for the quarter ended Dec. 31, 2010 as compared to Rs 15,590 million for the quarter ended Dec. 31, 2009, reflecting hike of 14.18%. The consolidated revenue of the country`s second largest software exporter rose to Rs 71.06 billion as against Rs 57.41 billion over the year ago period.

After a strong pull back in the previous trading session, bulls were unable to maintain the momentum. However, the NSE Nifty managed to end above the 5750 levels thanks to some buying seen in the Realty stocks.

The banking stocks were the top losers, the index witnessed a steep selloff as it fell 3.5%. Telecom and the Consumer Durables stocks were among the other major laggards. FMCG, Realty and Power are relatively better off.

Nifty January 2011 futures were at 5,761.25, at a premium of 9.35 points over spot closing of 5,751.90. Turnover in NSE's futures & options (F&O) segment declined to Rs 152571.83 crore from Rs 188988.48 crore on Wednesday, 12 January 2011.

Infosys Technologies January 2011 futures were at premium at 3,219 compared with spot closing of 3,203.20.

State Bank of India January 2011 futures were at premium at 2,570.50 compared with spot closing of 2,559.

Tata Motors January 2011 futures were at discount at 1,222.95 compared with spot closing of 1,234.50.

In the cash market, the S&P CNX Nifty plunged 111.35 points or 1.9% to settle at 5,751.90.

The 50-unit S&P CNX Nifty hit four-month closing low and the barometer index BSE Sensex dropped to its lowest closing level in nearly seven weeks as IT bellwether Infosys kickstarted the corporate earnings season on a weak note. Infosys tumbled almost 5% after the company's Q3 December 2010 earnings lagged market expectations and as its earnings and revenue outlook for Q4 March 2011 disappointed investors. Index heavyweights Reliance Industries (RIL) declined. Bank shares dropped on reports the Central Bureau of Investigation (CBI) has started inspecting documents of some state-run banks with regard to their lending to various telecom companies, as a part of the investigation into the telecom scandal.

Yesterday's mammoth recovery proved deceptive as benchmark indices gave away all the gains made in yesterday's trade, dragged down by Banking and IT stocks. Sensex slumped 351 points to close at 19183 while Nifty ended at 5752, down 111 points. BSE mid-cap and small-cap indices lost 0.8% and 0.6% respectively. Tech giant Infosys reported consolidated net profit of Rs. 1780 cr for the quarter ended December 2010, a growth of 2.5% q-o-q which fell short of the expectation of about Rs. 1815 cr. The company also missed estimates for future sales growth and warned of sluggish global economic growth. Infosys stock plunged 5.2%. Food inflation for the week ended January 1 fell to 16.91% from the 18.32% a week ago. Primary article inflation too eased from 20.2% to 17.58% while fuel price index rose 11.53% as against 11.63% in the previous week. European markets, slipped after a positive start and were trading marginally in the red.US stock indices futures too were marginally lower ahead of data on the labor market and international trade.

What a pull back! Bulls finally showed today that they may be down but certainly not out. After taking a drubbing over the past seven trading sessions, the Indian market bounced back with a vengeance, notwithstanding the downbeat IIP data and reports of CBI raids on top PSU banks.